The Impact of Extrinsic and Intrinsic Motivation towards Job Satisfaction in Finance Service Department of PT. XYZ | Catharina | iBuss Management 3724 7048 1 SM
iBuss Management Vol. 3, No. 2, (2015) 196-203
The Impact of Extrinsic and Intrinsic Motivation towards Job Satisfaction
in Finance Service Department of PT. XYZ
Theresia Catharina, Verina Victoria
International Business Management Program, Petra Christian University
Jl. Siwalankerto 121-131, Surabaya
E-mail: theresiacatharina93gmail.com, verina.victoria@yahoo.com
ABSTRACT
People are one of the resources that should be managed well by the company. There is no
exception for PT. XYZ. As one of the leading FMCG companies in Indonesia and the top 10 global
brand, PT XYZ surely has to manage the company well with the support of the employees. One of the
ways to keep the performance in the optimum level is by maintaining the job satisfaction of the
employees. In order to maintain the job satisfaction, the employees should keep motivated in doing the
job. This research is conducted to analyze the impact of intrinsic and extrinsic motivation of employees
in Finance Service department of PT. XYZ towards their job satisfaction. Data was gathered using
census by distributing questionnaires to 103 employees in Finance Service department of PT. XYZ. The
data then analyzed using Multiple Linear Regression analysis. From the research, it can be concluded
that overall, the intrinsic and extrinsic motivation of the employees in Finance Service department of
PT. XYZ simultaneously have significant impact on employees’ job satisfaction.
Keywords: Intrinsic motivation, extrinsic motivation, job satisfaction, Herzberg two-factor theory
ABSTRAK
Sumber daya manusia adalah salah satu aset yang harus dikelola dengan baik oleh
perusahaan. Tidak terkecuali untuk PT. XYZ. Sebagai salah 1 perusahaan FMCG terbaik di
Indonesia dan pemegang 10 besar brand global, PT. XYZ tentunya harus mengelola
perusahaannya dengan baik dengan dukungan dari karyawannya. Salah satu cara untuk
menjaga performa perusahaan di tingkat optimum adalah dengan menjaga kepuasan kerja
dari karyawannya. Untuk mempertahankan kepuasan kerja tersebut, karyawan harus terus
termotivasi dalam melaksanakan pekerjaannya. Penelitian ini dilakukan dengan tujuan
untuk mengetahui pengaruh motivasi intrinsik dan motivasi ekstrinsik dari karyawan di
department Finance Service PT. XYZ terhadap kepuasan kerja karyawan. Metode
pengumpulan data menggunakan metode sensus dengan mendistribusikan kuesioner kepada
103 karyawan di department Finance Service dari PT. XYZ. Data kemudian dianalisa dengan
menggunakan Analisa Multiple Linear Regression. Berdasarkan hasil penelitian, dapat disimpulkan
bahwa secara keseluruhan, motivasi intrinsik dan motivasi ekstrinsik dari karyawan di departemen
Finance Service PT. XYZ mempunyai pengaruh yang signifikan terhadap kepuasan karyawan.
Kata Kunci: Motivasi intrinsik, motivasi ekstrinsik, kepuasan kerja, teori two-factor Herzberg
INTRODUCTION
Indonesia is considered as a country that has
high level of consumption rate in cigarette. Due to
this condition, the growth of the tobacco industry in
Indonesia keeps increasing year by year. In 2010,
food and beverage and tobacco industry give the
biggest contribution to the manufacturing industry,
which is 29.17% (Badan Pusat Statistik, 2011) shown
in Figure 1. The tobacco (cigarette) industry
contributes 68% from the overall tax revenues, one of
the influential sources of the government revenue
(Dinas Perindustrian dan Perdagangan Jawa Timur,
2012).
That is why the tobacco companies are
considered as important industry to be maintained and
improved in order to support the Indonesia
economics.
There is a saying ‘a company is as good as its
employees’, which implies that to keep the
performance well, the company has to manage the
employees well. One of the ways to keep the
performance in the optimum level is by maintaining
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Figure 1. Indonesia’s contribution by sector
in manufacturing industry
Source: (Badan Pusat Statistik, 2011)
the job satisfaction of the employees itself. Job
satisfaction can be defined as positive emotional
response happen due to the appreciation from the job
or work done (Locke & Lathan, 1990). Job
satisfaction is a crucial factor that should be looked
after since it will impact on the employees’
commitment towards the organization. The employees
will work harder to achieve the goals of the
organization by having strong commitment and
loyalty (Armstrong, 2006). On the other hand, the
numerous studies have also shown that the unsatisfied
employees will lead to increase in the employee
turnover rate. Unhappy or dissatisfied employees tend
to be less motivated and will not be faithful to a
company (Beck, 1983), decrease in company
productivity (Batt, 2002), and high turnover cost as
the impact of resignation and recruitment (Personnel
and Development, 2009).
Many previous studies (e.g: Wang Lin and
friends in 2013) shows that work motivation can
improve the employee’s job satisfaction. Motivation
is defined as the forces acting on an employee that
initiate and direct behavior (Gibson, Ivancevich,
Dolleney, & Konopaske, 1996). According to
Herzberg (1959), there are several factors that
influence the employees’ satisfaction which are
extrinsic motivation and intrinsic motivation.
Extrinsic motivation is the motivation to acquire
material or social rewards or to avoid punishment.
While intrinsic motivation involves engaging in a
behavior because it is personally rewarding;
essentially, performing an activity for its own sake
rather than the desire for some external reward
(Cherry, n.d.).
Therefore, the writers intended to measure whether or
not the intrinsic motivation possessed by each employee
and extrinsic motivation offered offered by PT. XYZ has a
significant impact to the employee satisfaction in finance
service department.
LITERATURE REVIEW
Motivation
Luthans (1998) defines motivation as the process
that stimulates one’s acting or behaving affecting on
the performance in achieving goal of an organization.
Motivation can be influenced by various factors, such
as the work environment, the superiors, and also the
personality of the employee itself. Pinder (1998)
assert that the behavior in working can be triggered by
both internal and external factors. Therefore, it is very
important to know the process drives the behavior of
the employee for the organization. Herzberg twofactor model or motivation-hygiene theory will be
used in this research as the fundamental of work
motivation concept. This theory states that there is a
differentiation between factors that leads to job
satisfaction and job dissatisfaction. Herzberg theory
divided these factors into two big groups which are
intrinsic and extrinsic to the job (Herzberg, 1959).
Intrinsic to the Job
Intrinsic motivation Intrinsic to the job refers to
the behaviors that appear within the individuals since
it is driven by internal rewards. These intrinsic factors
are also well known as the “satisfiers” or
“motivators”. It is considered as the factors that lead
to give additional source for employee job
satisfaction. These factors consist of recognition,
achievement,
advancement,
work
itself,
responsibility, and personal growth.
Extrinsic to the Job
Extrinsic to the job is defined as the factor that
appears from outside the individuals that is associated
with the working environment. These extrinsic factors
are also well known as the “dissatisfaction avoidance”
or “hygiene” factors. Herzberg (1959) Herzberg
believes that hygiene factors cannot create
satisfaction, but it can reduce motivation when they
do not exist. It is because the employees have already
expected that extrinsic motivation in the beginning.
He also stressed that the feeling of satisfaction that
appear resulting from the extrinsic factors is
considered as short-term compared to the long-term
satisfaction from the intrinsic factors. The extrinsic to
the job factors consist of compensation, security,
working condition, company policies, status, and
interpersonal relationship. Although Herzberg theory
states that only intrinsic factors can create employees
job satisfaction, previous researches from Muslih
(2012), Putra and Frianto (2013), and Moynihan and
Pandey (2007) have found out that the extrinsic or
hygiene factors also influenced employees job
satisfaction. Thus, it can be concluded that intrinsic
and extrinsic or hygiene factors might rise employees
job satisfaction.
Job Satisfaction
Spector (1997) defined job satisfaction can be
defined as the extent to which people like (satisfied)
or dislike (dissatisfied) their jobs. Another definition
of job satisfaction given by Locke and Lathan (1976)
is a positive emotional state got from appraisals of
one’s job or the experience of the job itself. While
Luthan (1998) stated that job satisfaction consists of
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three essential dimensions, which are an inferred
emotional response that employee feels towards his
job situation, often measured by the gap between the
outcome and expectation, and the representative of
employees’ response to the most important
characteristics of the job. Job Satisfaction is an
important aspect in managing a company’s human
resources. A research done by Judge, Thoresen,
Bono, and Patton (2001) found that there is a .30
correlation between job satisfaction and job
performance. Job satisfaction is also correlated with
desirable behaviors at work, other than productivity,
such as less sabotage, stealing, purposively doing
work badly, and other trouble-causing activities
(Mangoine & Quinn, 1975). Another findings by
Christen, Cryler and Soberman (2005) stated that job
satisfaction leads to reduced turnover rate and less
absenteeism. In this paper, writers will adapt global
measurement of job satisfaction from Karim (2008)
added with two more measures based on writers’
definition on job satisfaction.
Relationship between Concepts
Kalleberg (1977) states that intrinsic motivation
to the job plays a vital role on affecting the employee
job satisfaction. Higher employees’ intrinsic
motivation may associate with higher employees’ job
satisfaction, and vice versa. As stated above,
according to the Herzberg theory (1959), the intrinsic
factors also motivate and give rise to the employee
job satisfaction. The greater job satisfaction leads to
lower the turnover rates and employee absenteeism
(Toe, Murhadi, & Lin, (n.d.)). The relationship
between intrinsic motivation and job satisfcation is
also supported by the previous study by Jusni (2008)
and Munizu (2006) that shows there is a positive and
significant relationship between work motivation and
job satisfcation. Stringer et al (2011) and Muslih
(2012) also confronts that there is positive
relationship between intrinsic motivation and job
satisfcation. Thus, this indicates that intrinsic
motivations may leads to job satisfaction as shown in
figure 2.
Figure 2. Relationships between Concepts
As for the extrinsic motivation, Ritter and Anker
(2002) clarifies that job security is considered as the
one of the other important extrinsic factor that has
direct relationship to job employee job satisfaction.
Furthermore, compensation which includes salary,
fringe benefits also has direct impact to employees’
job satisfaction. When an employee is paid lower
compared to the other employees with the same
position and job function, he will not be motivated
and satisfied with his compensation (Rahman, 2007).
In addition, the previous study also proves that
extrinsic motivation has positive and significant
relationship towards employees’ job satisfaction, such
as Jusni (2008) and Munizu (2006), Muslih (2012),
Putra and Frianto (2013), and Moynihan and Pandey
(2007). Thus, it can be concludes that extrinsic factors
give rise to employees’ job satisfaction.
Regarding the research outcome, these three
hypotheses are developed:
H1: Intrinsic and extrinsic motivations of PT XYZ
simultaneously have significant influence in
employees’ job satisfaction
H2: Intrinsic motivations of PT XYZ has significant
influence in employees’ job satisfaction
H3: Extrinsic motivations of PT XYZ has significant
influence in employees’ job satisfaction
RESEARCH METHOD
As the objectives of this research is to analyze
whether extrinsic and intrinsic motivations of PT
XYZ have positive influence in employees’ job
satisfaction, writers attempt to fulfil this research
objectives by explaining about the theories of
motivation that will be divided into two: extrinsic
motivation and intrinsic motivation and job
satisfaction; and conducting hypotheses testing.
Therefore, this study can be classified as a causalexplanatory study, which explains the relationship between
two or more variables and aims to explain why a
phenomenon occured using various theories and
hypotheses.
The independent variables used in this research will
be derived from work motivation, divided into two
variables: intrinsic motivation and extrinsic motivation. The
theory used to examine the independent variable,
motivation, is Herzberg two-factor model or
motivation-hygiene theory (Herzberg, 1959). The first
independent variable is intrinsic motivation. The
measurements for the intrinsic motivation variable
consist of six indicators as follows: recognition,
achievement, advancement, work itself, responsibility, and
personal growth. The second independent variable is
extrinsic motivation, which has six indicators asking about
compensation, security, working condition, company
policies, status, and interpersonal relations. Writers adapt
the measurement for both intrinsic and extrinsic
motivations based on the research done by Susanto
(2013).
The dependent variable used in this research is job
satisfaction, to be precise is employees’ job satisfaction
in Finance Service Department of PT. XYZ. The
measurement of job satisfaction will be adopted from
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the previous study by Karim (2008) that used global
measurement of job satisfaction, combined with the
writers’ own measurement based on the definition of
job satisfaction used in theoretical background. There
will be five indicators measuring the job satisfaction,
which are: Overall, I am satisfied with my current
work, I am satisfied with the appraisal get from my
work, I am satisfied with the company’s ability to
fulfill my important needs, In general, I don’t like my
job, In general I like working here.
In this research, writers accommodated the
questions using six points of Likert scale where 1
respresented ‘very low’ and 6 represented ‘very high.
Six point Likert scale is choosen to eliminate midpoint which is ‘neutral’, which is hoped to decrease
the social desirability bias that may arise from
respondents’ desire to “please the interviewer or
appear helpful or not be seen to give what they
perceive to be a socially unacceptable answer”
(Garland, 1991) . Second reason underlying the
consideration of using six point Likert scale is because 6
(six) is the closest even number to the usual 5 points
and raters are expected to take side on either positive
or negative position. The selection of six as scale
points can remove the existence of “don’t know
option” which usually results in inconclusive study
(Market Directions, (n.d.)). Since Likert scale items
are “created by calculating a composite score (sum or
mean) from four or more type Likert-type items
(Boone Jr. & Boone, 2012), therefore Likert scale
data analyzed at the interval measurement scale.
Primary data for this research will be collected
from questionnaires the writers distribute to Finance
Service employees in PT. XYZ. The result of the
questionnaires are then processed to analyze the
impact of intrinsic and extrinsic motivation towards
employees’ job satisfaction in Finance Service
division of PT. XYZ.
The population of this research is all of the
employees of Finance Service division in PT. XYZ.
In total, there are 117 permanent employees in the
division. The data gathered using census to all 117
permanent employees in Finance Service Department
of PT. XYZ. Writers distributed the questionnaire
manually using hard copy to the employees in
Finance Service Department of PT. XYZ.
The data gathered from questionnaires are then
run through several SPSS tests to make sure the data
gathered are accurate. The first tests done is to check the
justification of the data using outlier test, validity test, and
reliability test.
Outlier test is conducted to measure whether there is
an item with extremely different value compared to the
common observations data or not. The outlier test can \be
done by converting the data to the standardized score or zscore which has means value equals to 0 and standard
deviation equals to 1. According to Hair (1998), for the
sample above 80, the data is considered as outlier when the
standardized score is in the range between 3 until 4. Validity
test is used to measure whether or not the questionnaire
used in a research is valid (Ghozali, 2013). He continued, a
questionnaire is valid if the questions stated in the
questionnaire are able to express what is being measured in
the questionnaire. One of the method to do the validity test,
suggested by Ghozali (2013), is by doing correlation
between score of the questions with a total score of the
construct or variable. The r-value, or r-data of each
variable’s indicator, is compared to r-table for degree of
freedom d(f)= n-2, where n is number of sample. The
indicator or variable can be said as valid when the r-data
seen in Cronbach Alpha output under Correlated Item-total
Correlation in SPSS Statistical Software is positive and is
bigger than r-table. Reliability test tells about the extent to
which a measurement procedure is accurate and precise
(Cooper & Schindler, 2014). A questionnaire can be said as
reliable if the respond given by a respondent on a question is
consistent from time to time (Ghozali, 2013). This research
uses one shot measure, by measuring the correlation
between each questions’ answer. One shot measure can be
done with SPSS Statiscital Software using Cronbach Alpha
statistical test. A construct or variable is said to be reliable if
the score for Cronbach Alpha > 0.70 (Nunnally in Ghozali,
2013).The higher the Cronbach’s Aplha (closer to 1), the
better the reliability of that particular variable.
After all the data is justified, writers continue by
conducting Blue Classic Assumption test using SPSS.
There are four types of tests conducted. The first one is
Normality test. Normality test aims to test whether or not
residual in a regression model has a normal distribution
(Ghozali, 2013). There is an assumption used in t-test and
F-test where the residual value is normally distributed.
Hence, if the assumption is violated then the statistics will
be invalid. Autocorrelation test aims to analyze whether
there is correlation between residuals in the linear regression
model between one to another observations (Ghozali,
2013). Pallant (2005) suggested that “the residual terms in
regression models should be uncorrelated for any of the two
observations”, so the error between observations should not
be continual. In this research, autocorrelation will be tested
using Durbin-Watson test. Heteroscedasticity test aims to
analyze whether there is different variance of errors
between one and another observations in a regression model
(Ghozali, 2013). If the variance of errors or residuals from
one observation to other observation is the same it is called
homoscedasticity, and if it is different then it is called
heteroscedasticity. A good regression model should have
homoscedasticity instead of heteroscedasticity. In this
research writers will use Park test to test the
heteroscedasticity. Multicollinearity test aims to identify
whether there is correlation between independent variables
or not (Ghozali, 2013). When there is correlation between
variables, the values of regression coefficients for the
correlated variables may vary drastically. There are several
methods to test muticollinearity, in this research writers will
focus on using Tolerance and Variance Influence Factor
(VIF) for each independent variable.
After all of the Blue Classic Assumption tests being
passed, the next analysis conducted is the Multiple Linear
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Regression. Multiple Linear Regression is a tool to examine
how well a set of variables can predict a certain outcome
(Pallant, 2005). Multiple linear regression analysis is used to
find the explanatory relationship between dependent and
independent variables. The analysis will be used to analyze
how well intrinsic and extrinsic motivation can affect the
employees’ job satisfaction, as well as to understand which
motivation is the best predictor of job satisfaction.
Ghozali (2013) suggested that the accuracy of
multiple linear regression function in predicting the actual
value be measured by its Goodness of Fit. Statistically,
goodness of fit can be determined using its adjusted R2, FTest, and t-Test.
F-test is done to determine whether all the
independent variables included into the model have
significant impact toward the dependent variable or not
(Ghozali, 2013). t-test is done to test the significance of each
independent variable individually. It shows the influence of
each independent variable towards the dependent variable
(Ghozali, 2013). Coefficient of determination (R2) is used
to test the ability of the model in describing the real
condition in the population (Ghozali, 2013). The value for
R2 ranges between 0 and 1. The smaller the value means
the weaker the influence of the independent variables
towards the variance of dependent variables. On the other
hand, high value of Adjusted R2 (or closer to 1) means the
independent variables used are able to explain most of the
variance in dependent variables. Hence, the closer the
adjusted R2 to 1, the better the regression model is in
predicting the dependent variable (Cooper & Schindler,
Business Research Methods, 2014).
old (73.3%), bachelor degree graduates (92.2%), positioned
as staff (63%), have been working for less than 2 years
(33%). Then, prior to conducting multiple linear regression
test, the data needs to pass the validity test, reliability test,
outlier test, and blue classic assumption test.
Table 2. Validity Statistics of Variables
Item
Percentage
Male
Female
20 – 29 years old
30 – 39 years old
40 – 49 years old
50 – 59 years old
≥ 60 years old
S1
S2
Staff
Supervisor
Manager
< 2 year
2 – 4 years
5 – 7 years
8 – 10 years
≥ 11 years
18%
82%
73.3%
18.4%
7.3%
1%
0%
92%
8%
63%
27%
10%
33%
28.2%
23.3%
6.8%
8.7%
Age
Level of
Education
Position
Year of
Service
Correlation
Recognition
Achievement
Advancement
Work Itself
Responsibility
Personal Growth
Compensation
Securities 1
Securities 2
Working Condition 1
Working Condition 2
Company Policies 1
Company Policies 2
Status
Interpersonal Relations 1
Interpersonal Relations 2
Interpersonal Relations 3
Overall Satisfaction with their
Current Work
Satisfaction with the Appraisal
Get from their Work
Satisfaction with the Company’s
Ability to Fulfill their Important
Needs
General Preference with their Job
General Preference to Work in
PT. XYZ
0.453
0.521
0.384
0.426
0.511
0.403
0.557
0.561
0.562
0.558
0.557
0.574
0.569
0.590
0.607
0.557
0.563
0.521
Employees
’ Job
Satisfaction
0.485
0.446
0.522
0.366
To pass the validity test, the r-value of the results need
to be higher than the r-value from the table. The r-value
from the table is based on the two-tailed r table with the
significant level of 0.05 and degree of freedom 101, hence
the r-value from the table is 0.1937. As all the indicators
have corrected item-total correlations higher than 0.1937
(Table 2), the indicators are all valid.
Table 1. Demographics of the Sample
Gender
Indicators
Intrinsic
Motivation
Extrinsic
Motivation
RESULTS AND DISCUSSION
Measure
Variable
Table 3. Reliability Statistics of Variables
After distributing the questionnaires, there are 103
questionnaires that are processed further. Table 1 showed
the demographics of the sample used in this research.
Majority of the sample are female (82%), aged 20-29 years
Variable
Cronbach’s Alpha
Intrinsic Motivation
Extrinsic Motivation
Employees’ Job Satisfaction
0.717
0.869
0.711
To pass the reliability test, the Cronbach’s Alpha
needs to be higher than 0.70. As all the variables fulfill this
criteria (Table 3), the indicators are considered reliable.
To pass the outlier test, the standardized score should
not be in the range between 3 until 4. As all of the datas are
not in the range between 3 until 4, the datas are considered
as no outlier.
The blue classic assumption test needs to fulfill four
tests. First, to pass the normality test, the Z value calculated
using Zskewness and Zkurtosis formula needs to be lower
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than Z value from SPSS table, which is 1.96. As the Z value
calculated using Zskewness and Zkurtosis are 0.062 and
1.21 respectively, the data is normally distributed.
Second, to pass the autocorrelation test, the Durbin
Watson value should be higher than the upper limit (du) and
lower than the value of 4-du. The upper limit, based on the
Durbin Watson table, is 1.718. Hence, the Durbin Watson
value needs to be between 1.718 and 2.282. As the value is
1.761 (Table 4), the data passed the test.
Table 4. Durbin Watson Test
Model
R
R Square
a
1
.761
Adjusted R
Std. Error of the
Square
Estimate
.579
.570
Durbin-Watson
.266
1.761
Third, to pass the heteroscedasticity test, the p-value
of the Park Test need to have significance values higher
than 0.05. Looking at Table 5, the beta coefficients have
significance values that are much higher than 0.05, with the
lowest is 0.386. Hence, the data passes this test.
Then, the F-test and t-test are conducted to find out
whether the intrinsic and extrinsic motivations
simultaneously and individually influence employees’ jov
satisfaction. To pass the F test, the P-value in the ANOVA
table should be lower than this study’s significance level
(α), which is 0.05. Looking at the 0.000 value in Table 8,
the data has passed the F-test, implying that intrinsic and
extrinsic motivations simultaneously have a significant
impact toward employees’ job satisfaction. The result from
the test conducted is appropriate with the previous research
conducted by Suhartono (2015) which found that the work
motivation factors explained by 14 variables: achievement,
recognition, work itself, responsibility, advancement,
personal growth, company’s policy and administration,
salary, interpersonal relationship, working condition,
supervision, job security, personal life, and status
simultaneously have significant influence on job
satisfaction.
Table 8. ANOVA Table
Table 5. Park Test
Unstandardized
Standardized
Coefficients
Coefficients
Model
B
1
-1.668
3.013
Avg_Int
.041
.672
Avg_Ext
-.511
.587
(Constant)
Std. Error
Beta
T
Then, to pass the t-test, the significance value (Pvalue) of each independent variables need to be lower than
0.05 and the t-test statistic of each variables also need to be
higher than +1.98 or lower than -1.98.
Sig.
-.554 .581
.007
.060 .952
-.102 -.871 .386
Table 9. Coefficient Matrix of Independent Variables
Fourth, to pass the multicollinearity test, the tolerance
level needs to be higher than 0.10 and the VIF needs to be
lower than 10. As this criteria is fulfilled (Table 6), the data
is free from multicollinearity.
Table 6. Collinearity Statistics of the Variables
Collinearity Statistics
Model
1
Tolerance
VIF
(Constant)
Avg_Int
.717
1.395
Avg_Ext
.717
1.395
In conclusion, the data gathered has passed the
reliability, validity, outlier and blue classic assumption test.
Hence, the multiple linear regression test can be
conducted. Table 7 showed that the adjusted R-Squared of
the regression model is 0.570, which means that 57.0% of
the variance in the employees’ job satisfaction variable can
be explained by the independent variables: intrinsic and
extrinsic motivation. Also, as the value is closer to 1 than 0,
the relationship is considered strong.
Table 7. Model Summary of Multiple Regression
Model
1
R
R Square
.761a
.579
Adjusted R
Square
.570
Std. Error of the
Estimate
.266
For the first independent variable, intrinsic motivation,
table 9 shows that the significance t-value 0.00 is lower than
the significance level 0.05 and the t-value 6.621 is higher
than 1.98 synchronously. Therefore, it can be concluded
that the intrinsic motivations of PT XYZ have significant
influence in employees’ job satisfaction. This result is also
supported by Toe, Murhadi, Lin (n.d.), Kalleberg (1977),
Herzberg (1959), and Stringer et al (2011) and Muslih
(2012). Furthermore, based on the value stated under the
intrinsic motivations’ column unstandardized coefficient
0.522, meaning every 1 unit increase in intrinsic motivation
will result to 0.522 increase in employees’ job satisfaction,
the other effect of changes resulted by the other independent
variable is held constant. Knowing that relationship, PT.
XYZ has done various intrinsic motivations to maximize
the employees’ job satisfaction through the chance of each
division to be trusted as the Finance Service event
committee and open for new ideas. As a result, it is
expected that the value of all intrinsic motivations indicators
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are close to 5, means the employees are quite satisfied with
the intrinsic motivation given in the Finance Service
Department of PT. XYZ.
Next, for the second independent variable, extrinsic
motivation, table 9 indicates that the significance t-value
0.00 is lower than the significance level 0.05 and the t-value
4.666 is higher than 1.98 simultaneously. Hence, it can be
concluded that the extrinsic motivations of PT XYZ have
positive influence in employees’ job satisfaction. This result
is supported by the previous researchers Susanto (2013),
Jusni (2008), Munizu (2006), Muslih (2012), Putra and
Frianto (2013), Moynihan and Pandey (2007), and Ritter
and Anker (2002). In addition, based on the value stated
under the column unstandardized coefficient B 0.321,
meaning every 1 unit increase in extrinsic motivation will
result to 0.321 increase in employees’ job satisfaction, the
other effect of changes resulted by the other independent
variable is held constant. Knowing this relationship, PT.
XYZ has done various extrinsic motivations to maximize
the employees’ job satisfaction through the security given,
like the employees that are still in the probation period, are
also given security to work, like JAMSOSTEK and health
insurance by PT. XYZ. The result is expected to occur that
the value of all extrinsic motivations indicators are around 5,
means the employees are quite satisfied with the extrinsic
motivation given in the Finance Service Department of PT.
XYZ.
Finally, after interpreting the results and deciding to
accept or reject the hypotheses, researcher will compare the
unstandardized coefficients to find out which variable has
the most significant impact towards employees’ job
satisfation. Hence, comparing the unstandardized
coefficient of each independent variable in Table 9, the
intrinsic motivation variable has the highest beta coefficient
of 0.522 and followed by extrinsic motivation with 0.321. It
means that changes in the intrinsic motivation variable will
impact most to the changes in employees’ job satisfaction,
making it the most significant indicator. According to the
researchers’ observation, the result is because most of the
employees in PT. XYZ are from the middle-high income
family. It can be referred to the fact that many of the
employees in PT. XYZ are graduated from the foreign
country. Therefore, pay is not the primary need to fulfill
their employees’ job satisfaction and the extrinsic
motivation has less significant impact compared to the
intrinsic motivation.
CONCLUSION
First test held after gathering the data is outlier test,
validity test, and reliability test to see the justification of the
data. The researchers justified the data in order to ensure
that the data can be processed in the further analysis. The
result shows that all of the variables are valid, reliable, and
no outlier. Next step is analyzing the blue classic
assumption test using four approaches: normality,
autocorrelation, heterocedasticity, and multicollinearity test.
As a result of those approaches, it indicates good data of the
regression model that can be used to be proceed later since it
is normally distributed, no autocorrelation, no
heterocedasticity, and no multicollinearity.
The last anaylsis is using multiple linear regression
model to achieve the research objectives stated in chapter 1.
As a result for the first objective, based on the F-test
conducted, it is shown that both intrinsic and extrinsic
motivation simultaneously have significant influence
toward employees’ job satisfaction. Additionally, the t-test
result shows that the significant values are below 0.05 for all
of those two independent variable which are intrinsic and
extrinsic motivation of PT. XYZ. Hence, it can be
concluded that each of the independent variable, intrinsic
and extrinsic motivations of PT XYZ, have positive
influence in employees’ job satisfaction, which achieve the
second and third research objectives at the same time.
Furthermore, in general, based on the adjusted R
squared valued from the multiple regression analysis,
57.0% of the variation in the intrinsic and extrinsic
motivation can represent the variation in employees’ job
satisfaction of PT. XYZ. Thus, there are still 43% of the
variance in the population which could not been explained
using this model.
However, during the execution of this research, there
are several limitations, which are limitation of scope and
limitation of independent variables. This research does not
cover all functions in PT. XYZ and only focuses on the
Finance Service department. Therefore, there is possibility
that the result of the research may not reflect the condition
of employees’ satisfaction in PT. XYZ as a whole. In
addition, since the research is conducted in only one
company, which is PT. XYZ, the result of this research
cannot be used to generalize the condition of Indonesia
employees’ characteristics as a whole. This research also
only measures two independent variables, which is intrinsic
motivation and extrinsic motivation. Furthermore,
according to the Adjusted R Square of the research, there
are other 43% of factors beside intrinsic and extrinsic
motivation that can influence the satisfaction of the
employees. These 43% is not being covered in our research.
Thus, other independent variables such as dispositional
issue of one’s personality or personal life can be added.
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RESEARCH STUDY ON THE CORRELATION
BETWEEN EMPLOYEE JOB SATISFACTION
AND EMPLOYEE MOTIVATION. “”1-22.
203
The Impact of Extrinsic and Intrinsic Motivation towards Job Satisfaction
in Finance Service Department of PT. XYZ
Theresia Catharina, Verina Victoria
International Business Management Program, Petra Christian University
Jl. Siwalankerto 121-131, Surabaya
E-mail: theresiacatharina93gmail.com, verina.victoria@yahoo.com
ABSTRACT
People are one of the resources that should be managed well by the company. There is no
exception for PT. XYZ. As one of the leading FMCG companies in Indonesia and the top 10 global
brand, PT XYZ surely has to manage the company well with the support of the employees. One of the
ways to keep the performance in the optimum level is by maintaining the job satisfaction of the
employees. In order to maintain the job satisfaction, the employees should keep motivated in doing the
job. This research is conducted to analyze the impact of intrinsic and extrinsic motivation of employees
in Finance Service department of PT. XYZ towards their job satisfaction. Data was gathered using
census by distributing questionnaires to 103 employees in Finance Service department of PT. XYZ. The
data then analyzed using Multiple Linear Regression analysis. From the research, it can be concluded
that overall, the intrinsic and extrinsic motivation of the employees in Finance Service department of
PT. XYZ simultaneously have significant impact on employees’ job satisfaction.
Keywords: Intrinsic motivation, extrinsic motivation, job satisfaction, Herzberg two-factor theory
ABSTRAK
Sumber daya manusia adalah salah satu aset yang harus dikelola dengan baik oleh
perusahaan. Tidak terkecuali untuk PT. XYZ. Sebagai salah 1 perusahaan FMCG terbaik di
Indonesia dan pemegang 10 besar brand global, PT. XYZ tentunya harus mengelola
perusahaannya dengan baik dengan dukungan dari karyawannya. Salah satu cara untuk
menjaga performa perusahaan di tingkat optimum adalah dengan menjaga kepuasan kerja
dari karyawannya. Untuk mempertahankan kepuasan kerja tersebut, karyawan harus terus
termotivasi dalam melaksanakan pekerjaannya. Penelitian ini dilakukan dengan tujuan
untuk mengetahui pengaruh motivasi intrinsik dan motivasi ekstrinsik dari karyawan di
department Finance Service PT. XYZ terhadap kepuasan kerja karyawan. Metode
pengumpulan data menggunakan metode sensus dengan mendistribusikan kuesioner kepada
103 karyawan di department Finance Service dari PT. XYZ. Data kemudian dianalisa dengan
menggunakan Analisa Multiple Linear Regression. Berdasarkan hasil penelitian, dapat disimpulkan
bahwa secara keseluruhan, motivasi intrinsik dan motivasi ekstrinsik dari karyawan di departemen
Finance Service PT. XYZ mempunyai pengaruh yang signifikan terhadap kepuasan karyawan.
Kata Kunci: Motivasi intrinsik, motivasi ekstrinsik, kepuasan kerja, teori two-factor Herzberg
INTRODUCTION
Indonesia is considered as a country that has
high level of consumption rate in cigarette. Due to
this condition, the growth of the tobacco industry in
Indonesia keeps increasing year by year. In 2010,
food and beverage and tobacco industry give the
biggest contribution to the manufacturing industry,
which is 29.17% (Badan Pusat Statistik, 2011) shown
in Figure 1. The tobacco (cigarette) industry
contributes 68% from the overall tax revenues, one of
the influential sources of the government revenue
(Dinas Perindustrian dan Perdagangan Jawa Timur,
2012).
That is why the tobacco companies are
considered as important industry to be maintained and
improved in order to support the Indonesia
economics.
There is a saying ‘a company is as good as its
employees’, which implies that to keep the
performance well, the company has to manage the
employees well. One of the ways to keep the
performance in the optimum level is by maintaining
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Figure 1. Indonesia’s contribution by sector
in manufacturing industry
Source: (Badan Pusat Statistik, 2011)
the job satisfaction of the employees itself. Job
satisfaction can be defined as positive emotional
response happen due to the appreciation from the job
or work done (Locke & Lathan, 1990). Job
satisfaction is a crucial factor that should be looked
after since it will impact on the employees’
commitment towards the organization. The employees
will work harder to achieve the goals of the
organization by having strong commitment and
loyalty (Armstrong, 2006). On the other hand, the
numerous studies have also shown that the unsatisfied
employees will lead to increase in the employee
turnover rate. Unhappy or dissatisfied employees tend
to be less motivated and will not be faithful to a
company (Beck, 1983), decrease in company
productivity (Batt, 2002), and high turnover cost as
the impact of resignation and recruitment (Personnel
and Development, 2009).
Many previous studies (e.g: Wang Lin and
friends in 2013) shows that work motivation can
improve the employee’s job satisfaction. Motivation
is defined as the forces acting on an employee that
initiate and direct behavior (Gibson, Ivancevich,
Dolleney, & Konopaske, 1996). According to
Herzberg (1959), there are several factors that
influence the employees’ satisfaction which are
extrinsic motivation and intrinsic motivation.
Extrinsic motivation is the motivation to acquire
material or social rewards or to avoid punishment.
While intrinsic motivation involves engaging in a
behavior because it is personally rewarding;
essentially, performing an activity for its own sake
rather than the desire for some external reward
(Cherry, n.d.).
Therefore, the writers intended to measure whether or
not the intrinsic motivation possessed by each employee
and extrinsic motivation offered offered by PT. XYZ has a
significant impact to the employee satisfaction in finance
service department.
LITERATURE REVIEW
Motivation
Luthans (1998) defines motivation as the process
that stimulates one’s acting or behaving affecting on
the performance in achieving goal of an organization.
Motivation can be influenced by various factors, such
as the work environment, the superiors, and also the
personality of the employee itself. Pinder (1998)
assert that the behavior in working can be triggered by
both internal and external factors. Therefore, it is very
important to know the process drives the behavior of
the employee for the organization. Herzberg twofactor model or motivation-hygiene theory will be
used in this research as the fundamental of work
motivation concept. This theory states that there is a
differentiation between factors that leads to job
satisfaction and job dissatisfaction. Herzberg theory
divided these factors into two big groups which are
intrinsic and extrinsic to the job (Herzberg, 1959).
Intrinsic to the Job
Intrinsic motivation Intrinsic to the job refers to
the behaviors that appear within the individuals since
it is driven by internal rewards. These intrinsic factors
are also well known as the “satisfiers” or
“motivators”. It is considered as the factors that lead
to give additional source for employee job
satisfaction. These factors consist of recognition,
achievement,
advancement,
work
itself,
responsibility, and personal growth.
Extrinsic to the Job
Extrinsic to the job is defined as the factor that
appears from outside the individuals that is associated
with the working environment. These extrinsic factors
are also well known as the “dissatisfaction avoidance”
or “hygiene” factors. Herzberg (1959) Herzberg
believes that hygiene factors cannot create
satisfaction, but it can reduce motivation when they
do not exist. It is because the employees have already
expected that extrinsic motivation in the beginning.
He also stressed that the feeling of satisfaction that
appear resulting from the extrinsic factors is
considered as short-term compared to the long-term
satisfaction from the intrinsic factors. The extrinsic to
the job factors consist of compensation, security,
working condition, company policies, status, and
interpersonal relationship. Although Herzberg theory
states that only intrinsic factors can create employees
job satisfaction, previous researches from Muslih
(2012), Putra and Frianto (2013), and Moynihan and
Pandey (2007) have found out that the extrinsic or
hygiene factors also influenced employees job
satisfaction. Thus, it can be concluded that intrinsic
and extrinsic or hygiene factors might rise employees
job satisfaction.
Job Satisfaction
Spector (1997) defined job satisfaction can be
defined as the extent to which people like (satisfied)
or dislike (dissatisfied) their jobs. Another definition
of job satisfaction given by Locke and Lathan (1976)
is a positive emotional state got from appraisals of
one’s job or the experience of the job itself. While
Luthan (1998) stated that job satisfaction consists of
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three essential dimensions, which are an inferred
emotional response that employee feels towards his
job situation, often measured by the gap between the
outcome and expectation, and the representative of
employees’ response to the most important
characteristics of the job. Job Satisfaction is an
important aspect in managing a company’s human
resources. A research done by Judge, Thoresen,
Bono, and Patton (2001) found that there is a .30
correlation between job satisfaction and job
performance. Job satisfaction is also correlated with
desirable behaviors at work, other than productivity,
such as less sabotage, stealing, purposively doing
work badly, and other trouble-causing activities
(Mangoine & Quinn, 1975). Another findings by
Christen, Cryler and Soberman (2005) stated that job
satisfaction leads to reduced turnover rate and less
absenteeism. In this paper, writers will adapt global
measurement of job satisfaction from Karim (2008)
added with two more measures based on writers’
definition on job satisfaction.
Relationship between Concepts
Kalleberg (1977) states that intrinsic motivation
to the job plays a vital role on affecting the employee
job satisfaction. Higher employees’ intrinsic
motivation may associate with higher employees’ job
satisfaction, and vice versa. As stated above,
according to the Herzberg theory (1959), the intrinsic
factors also motivate and give rise to the employee
job satisfaction. The greater job satisfaction leads to
lower the turnover rates and employee absenteeism
(Toe, Murhadi, & Lin, (n.d.)). The relationship
between intrinsic motivation and job satisfcation is
also supported by the previous study by Jusni (2008)
and Munizu (2006) that shows there is a positive and
significant relationship between work motivation and
job satisfcation. Stringer et al (2011) and Muslih
(2012) also confronts that there is positive
relationship between intrinsic motivation and job
satisfcation. Thus, this indicates that intrinsic
motivations may leads to job satisfaction as shown in
figure 2.
Figure 2. Relationships between Concepts
As for the extrinsic motivation, Ritter and Anker
(2002) clarifies that job security is considered as the
one of the other important extrinsic factor that has
direct relationship to job employee job satisfaction.
Furthermore, compensation which includes salary,
fringe benefits also has direct impact to employees’
job satisfaction. When an employee is paid lower
compared to the other employees with the same
position and job function, he will not be motivated
and satisfied with his compensation (Rahman, 2007).
In addition, the previous study also proves that
extrinsic motivation has positive and significant
relationship towards employees’ job satisfaction, such
as Jusni (2008) and Munizu (2006), Muslih (2012),
Putra and Frianto (2013), and Moynihan and Pandey
(2007). Thus, it can be concludes that extrinsic factors
give rise to employees’ job satisfaction.
Regarding the research outcome, these three
hypotheses are developed:
H1: Intrinsic and extrinsic motivations of PT XYZ
simultaneously have significant influence in
employees’ job satisfaction
H2: Intrinsic motivations of PT XYZ has significant
influence in employees’ job satisfaction
H3: Extrinsic motivations of PT XYZ has significant
influence in employees’ job satisfaction
RESEARCH METHOD
As the objectives of this research is to analyze
whether extrinsic and intrinsic motivations of PT
XYZ have positive influence in employees’ job
satisfaction, writers attempt to fulfil this research
objectives by explaining about the theories of
motivation that will be divided into two: extrinsic
motivation and intrinsic motivation and job
satisfaction; and conducting hypotheses testing.
Therefore, this study can be classified as a causalexplanatory study, which explains the relationship between
two or more variables and aims to explain why a
phenomenon occured using various theories and
hypotheses.
The independent variables used in this research will
be derived from work motivation, divided into two
variables: intrinsic motivation and extrinsic motivation. The
theory used to examine the independent variable,
motivation, is Herzberg two-factor model or
motivation-hygiene theory (Herzberg, 1959). The first
independent variable is intrinsic motivation. The
measurements for the intrinsic motivation variable
consist of six indicators as follows: recognition,
achievement, advancement, work itself, responsibility, and
personal growth. The second independent variable is
extrinsic motivation, which has six indicators asking about
compensation, security, working condition, company
policies, status, and interpersonal relations. Writers adapt
the measurement for both intrinsic and extrinsic
motivations based on the research done by Susanto
(2013).
The dependent variable used in this research is job
satisfaction, to be precise is employees’ job satisfaction
in Finance Service Department of PT. XYZ. The
measurement of job satisfaction will be adopted from
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the previous study by Karim (2008) that used global
measurement of job satisfaction, combined with the
writers’ own measurement based on the definition of
job satisfaction used in theoretical background. There
will be five indicators measuring the job satisfaction,
which are: Overall, I am satisfied with my current
work, I am satisfied with the appraisal get from my
work, I am satisfied with the company’s ability to
fulfill my important needs, In general, I don’t like my
job, In general I like working here.
In this research, writers accommodated the
questions using six points of Likert scale where 1
respresented ‘very low’ and 6 represented ‘very high.
Six point Likert scale is choosen to eliminate midpoint which is ‘neutral’, which is hoped to decrease
the social desirability bias that may arise from
respondents’ desire to “please the interviewer or
appear helpful or not be seen to give what they
perceive to be a socially unacceptable answer”
(Garland, 1991) . Second reason underlying the
consideration of using six point Likert scale is because 6
(six) is the closest even number to the usual 5 points
and raters are expected to take side on either positive
or negative position. The selection of six as scale
points can remove the existence of “don’t know
option” which usually results in inconclusive study
(Market Directions, (n.d.)). Since Likert scale items
are “created by calculating a composite score (sum or
mean) from four or more type Likert-type items
(Boone Jr. & Boone, 2012), therefore Likert scale
data analyzed at the interval measurement scale.
Primary data for this research will be collected
from questionnaires the writers distribute to Finance
Service employees in PT. XYZ. The result of the
questionnaires are then processed to analyze the
impact of intrinsic and extrinsic motivation towards
employees’ job satisfaction in Finance Service
division of PT. XYZ.
The population of this research is all of the
employees of Finance Service division in PT. XYZ.
In total, there are 117 permanent employees in the
division. The data gathered using census to all 117
permanent employees in Finance Service Department
of PT. XYZ. Writers distributed the questionnaire
manually using hard copy to the employees in
Finance Service Department of PT. XYZ.
The data gathered from questionnaires are then
run through several SPSS tests to make sure the data
gathered are accurate. The first tests done is to check the
justification of the data using outlier test, validity test, and
reliability test.
Outlier test is conducted to measure whether there is
an item with extremely different value compared to the
common observations data or not. The outlier test can \be
done by converting the data to the standardized score or zscore which has means value equals to 0 and standard
deviation equals to 1. According to Hair (1998), for the
sample above 80, the data is considered as outlier when the
standardized score is in the range between 3 until 4. Validity
test is used to measure whether or not the questionnaire
used in a research is valid (Ghozali, 2013). He continued, a
questionnaire is valid if the questions stated in the
questionnaire are able to express what is being measured in
the questionnaire. One of the method to do the validity test,
suggested by Ghozali (2013), is by doing correlation
between score of the questions with a total score of the
construct or variable. The r-value, or r-data of each
variable’s indicator, is compared to r-table for degree of
freedom d(f)= n-2, where n is number of sample. The
indicator or variable can be said as valid when the r-data
seen in Cronbach Alpha output under Correlated Item-total
Correlation in SPSS Statistical Software is positive and is
bigger than r-table. Reliability test tells about the extent to
which a measurement procedure is accurate and precise
(Cooper & Schindler, 2014). A questionnaire can be said as
reliable if the respond given by a respondent on a question is
consistent from time to time (Ghozali, 2013). This research
uses one shot measure, by measuring the correlation
between each questions’ answer. One shot measure can be
done with SPSS Statiscital Software using Cronbach Alpha
statistical test. A construct or variable is said to be reliable if
the score for Cronbach Alpha > 0.70 (Nunnally in Ghozali,
2013).The higher the Cronbach’s Aplha (closer to 1), the
better the reliability of that particular variable.
After all the data is justified, writers continue by
conducting Blue Classic Assumption test using SPSS.
There are four types of tests conducted. The first one is
Normality test. Normality test aims to test whether or not
residual in a regression model has a normal distribution
(Ghozali, 2013). There is an assumption used in t-test and
F-test where the residual value is normally distributed.
Hence, if the assumption is violated then the statistics will
be invalid. Autocorrelation test aims to analyze whether
there is correlation between residuals in the linear regression
model between one to another observations (Ghozali,
2013). Pallant (2005) suggested that “the residual terms in
regression models should be uncorrelated for any of the two
observations”, so the error between observations should not
be continual. In this research, autocorrelation will be tested
using Durbin-Watson test. Heteroscedasticity test aims to
analyze whether there is different variance of errors
between one and another observations in a regression model
(Ghozali, 2013). If the variance of errors or residuals from
one observation to other observation is the same it is called
homoscedasticity, and if it is different then it is called
heteroscedasticity. A good regression model should have
homoscedasticity instead of heteroscedasticity. In this
research writers will use Park test to test the
heteroscedasticity. Multicollinearity test aims to identify
whether there is correlation between independent variables
or not (Ghozali, 2013). When there is correlation between
variables, the values of regression coefficients for the
correlated variables may vary drastically. There are several
methods to test muticollinearity, in this research writers will
focus on using Tolerance and Variance Influence Factor
(VIF) for each independent variable.
After all of the Blue Classic Assumption tests being
passed, the next analysis conducted is the Multiple Linear
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Regression. Multiple Linear Regression is a tool to examine
how well a set of variables can predict a certain outcome
(Pallant, 2005). Multiple linear regression analysis is used to
find the explanatory relationship between dependent and
independent variables. The analysis will be used to analyze
how well intrinsic and extrinsic motivation can affect the
employees’ job satisfaction, as well as to understand which
motivation is the best predictor of job satisfaction.
Ghozali (2013) suggested that the accuracy of
multiple linear regression function in predicting the actual
value be measured by its Goodness of Fit. Statistically,
goodness of fit can be determined using its adjusted R2, FTest, and t-Test.
F-test is done to determine whether all the
independent variables included into the model have
significant impact toward the dependent variable or not
(Ghozali, 2013). t-test is done to test the significance of each
independent variable individually. It shows the influence of
each independent variable towards the dependent variable
(Ghozali, 2013). Coefficient of determination (R2) is used
to test the ability of the model in describing the real
condition in the population (Ghozali, 2013). The value for
R2 ranges between 0 and 1. The smaller the value means
the weaker the influence of the independent variables
towards the variance of dependent variables. On the other
hand, high value of Adjusted R2 (or closer to 1) means the
independent variables used are able to explain most of the
variance in dependent variables. Hence, the closer the
adjusted R2 to 1, the better the regression model is in
predicting the dependent variable (Cooper & Schindler,
Business Research Methods, 2014).
old (73.3%), bachelor degree graduates (92.2%), positioned
as staff (63%), have been working for less than 2 years
(33%). Then, prior to conducting multiple linear regression
test, the data needs to pass the validity test, reliability test,
outlier test, and blue classic assumption test.
Table 2. Validity Statistics of Variables
Item
Percentage
Male
Female
20 – 29 years old
30 – 39 years old
40 – 49 years old
50 – 59 years old
≥ 60 years old
S1
S2
Staff
Supervisor
Manager
< 2 year
2 – 4 years
5 – 7 years
8 – 10 years
≥ 11 years
18%
82%
73.3%
18.4%
7.3%
1%
0%
92%
8%
63%
27%
10%
33%
28.2%
23.3%
6.8%
8.7%
Age
Level of
Education
Position
Year of
Service
Correlation
Recognition
Achievement
Advancement
Work Itself
Responsibility
Personal Growth
Compensation
Securities 1
Securities 2
Working Condition 1
Working Condition 2
Company Policies 1
Company Policies 2
Status
Interpersonal Relations 1
Interpersonal Relations 2
Interpersonal Relations 3
Overall Satisfaction with their
Current Work
Satisfaction with the Appraisal
Get from their Work
Satisfaction with the Company’s
Ability to Fulfill their Important
Needs
General Preference with their Job
General Preference to Work in
PT. XYZ
0.453
0.521
0.384
0.426
0.511
0.403
0.557
0.561
0.562
0.558
0.557
0.574
0.569
0.590
0.607
0.557
0.563
0.521
Employees
’ Job
Satisfaction
0.485
0.446
0.522
0.366
To pass the validity test, the r-value of the results need
to be higher than the r-value from the table. The r-value
from the table is based on the two-tailed r table with the
significant level of 0.05 and degree of freedom 101, hence
the r-value from the table is 0.1937. As all the indicators
have corrected item-total correlations higher than 0.1937
(Table 2), the indicators are all valid.
Table 1. Demographics of the Sample
Gender
Indicators
Intrinsic
Motivation
Extrinsic
Motivation
RESULTS AND DISCUSSION
Measure
Variable
Table 3. Reliability Statistics of Variables
After distributing the questionnaires, there are 103
questionnaires that are processed further. Table 1 showed
the demographics of the sample used in this research.
Majority of the sample are female (82%), aged 20-29 years
Variable
Cronbach’s Alpha
Intrinsic Motivation
Extrinsic Motivation
Employees’ Job Satisfaction
0.717
0.869
0.711
To pass the reliability test, the Cronbach’s Alpha
needs to be higher than 0.70. As all the variables fulfill this
criteria (Table 3), the indicators are considered reliable.
To pass the outlier test, the standardized score should
not be in the range between 3 until 4. As all of the datas are
not in the range between 3 until 4, the datas are considered
as no outlier.
The blue classic assumption test needs to fulfill four
tests. First, to pass the normality test, the Z value calculated
using Zskewness and Zkurtosis formula needs to be lower
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than Z value from SPSS table, which is 1.96. As the Z value
calculated using Zskewness and Zkurtosis are 0.062 and
1.21 respectively, the data is normally distributed.
Second, to pass the autocorrelation test, the Durbin
Watson value should be higher than the upper limit (du) and
lower than the value of 4-du. The upper limit, based on the
Durbin Watson table, is 1.718. Hence, the Durbin Watson
value needs to be between 1.718 and 2.282. As the value is
1.761 (Table 4), the data passed the test.
Table 4. Durbin Watson Test
Model
R
R Square
a
1
.761
Adjusted R
Std. Error of the
Square
Estimate
.579
.570
Durbin-Watson
.266
1.761
Third, to pass the heteroscedasticity test, the p-value
of the Park Test need to have significance values higher
than 0.05. Looking at Table 5, the beta coefficients have
significance values that are much higher than 0.05, with the
lowest is 0.386. Hence, the data passes this test.
Then, the F-test and t-test are conducted to find out
whether the intrinsic and extrinsic motivations
simultaneously and individually influence employees’ jov
satisfaction. To pass the F test, the P-value in the ANOVA
table should be lower than this study’s significance level
(α), which is 0.05. Looking at the 0.000 value in Table 8,
the data has passed the F-test, implying that intrinsic and
extrinsic motivations simultaneously have a significant
impact toward employees’ job satisfaction. The result from
the test conducted is appropriate with the previous research
conducted by Suhartono (2015) which found that the work
motivation factors explained by 14 variables: achievement,
recognition, work itself, responsibility, advancement,
personal growth, company’s policy and administration,
salary, interpersonal relationship, working condition,
supervision, job security, personal life, and status
simultaneously have significant influence on job
satisfaction.
Table 8. ANOVA Table
Table 5. Park Test
Unstandardized
Standardized
Coefficients
Coefficients
Model
B
1
-1.668
3.013
Avg_Int
.041
.672
Avg_Ext
-.511
.587
(Constant)
Std. Error
Beta
T
Then, to pass the t-test, the significance value (Pvalue) of each independent variables need to be lower than
0.05 and the t-test statistic of each variables also need to be
higher than +1.98 or lower than -1.98.
Sig.
-.554 .581
.007
.060 .952
-.102 -.871 .386
Table 9. Coefficient Matrix of Independent Variables
Fourth, to pass the multicollinearity test, the tolerance
level needs to be higher than 0.10 and the VIF needs to be
lower than 10. As this criteria is fulfilled (Table 6), the data
is free from multicollinearity.
Table 6. Collinearity Statistics of the Variables
Collinearity Statistics
Model
1
Tolerance
VIF
(Constant)
Avg_Int
.717
1.395
Avg_Ext
.717
1.395
In conclusion, the data gathered has passed the
reliability, validity, outlier and blue classic assumption test.
Hence, the multiple linear regression test can be
conducted. Table 7 showed that the adjusted R-Squared of
the regression model is 0.570, which means that 57.0% of
the variance in the employees’ job satisfaction variable can
be explained by the independent variables: intrinsic and
extrinsic motivation. Also, as the value is closer to 1 than 0,
the relationship is considered strong.
Table 7. Model Summary of Multiple Regression
Model
1
R
R Square
.761a
.579
Adjusted R
Square
.570
Std. Error of the
Estimate
.266
For the first independent variable, intrinsic motivation,
table 9 shows that the significance t-value 0.00 is lower than
the significance level 0.05 and the t-value 6.621 is higher
than 1.98 synchronously. Therefore, it can be concluded
that the intrinsic motivations of PT XYZ have significant
influence in employees’ job satisfaction. This result is also
supported by Toe, Murhadi, Lin (n.d.), Kalleberg (1977),
Herzberg (1959), and Stringer et al (2011) and Muslih
(2012). Furthermore, based on the value stated under the
intrinsic motivations’ column unstandardized coefficient
0.522, meaning every 1 unit increase in intrinsic motivation
will result to 0.522 increase in employees’ job satisfaction,
the other effect of changes resulted by the other independent
variable is held constant. Knowing that relationship, PT.
XYZ has done various intrinsic motivations to maximize
the employees’ job satisfaction through the chance of each
division to be trusted as the Finance Service event
committee and open for new ideas. As a result, it is
expected that the value of all intrinsic motivations indicators
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are close to 5, means the employees are quite satisfied with
the intrinsic motivation given in the Finance Service
Department of PT. XYZ.
Next, for the second independent variable, extrinsic
motivation, table 9 indicates that the significance t-value
0.00 is lower than the significance level 0.05 and the t-value
4.666 is higher than 1.98 simultaneously. Hence, it can be
concluded that the extrinsic motivations of PT XYZ have
positive influence in employees’ job satisfaction. This result
is supported by the previous researchers Susanto (2013),
Jusni (2008), Munizu (2006), Muslih (2012), Putra and
Frianto (2013), Moynihan and Pandey (2007), and Ritter
and Anker (2002). In addition, based on the value stated
under the column unstandardized coefficient B 0.321,
meaning every 1 unit increase in extrinsic motivation will
result to 0.321 increase in employees’ job satisfaction, the
other effect of changes resulted by the other independent
variable is held constant. Knowing this relationship, PT.
XYZ has done various extrinsic motivations to maximize
the employees’ job satisfaction through the security given,
like the employees that are still in the probation period, are
also given security to work, like JAMSOSTEK and health
insurance by PT. XYZ. The result is expected to occur that
the value of all extrinsic motivations indicators are around 5,
means the employees are quite satisfied with the extrinsic
motivation given in the Finance Service Department of PT.
XYZ.
Finally, after interpreting the results and deciding to
accept or reject the hypotheses, researcher will compare the
unstandardized coefficients to find out which variable has
the most significant impact towards employees’ job
satisfation. Hence, comparing the unstandardized
coefficient of each independent variable in Table 9, the
intrinsic motivation variable has the highest beta coefficient
of 0.522 and followed by extrinsic motivation with 0.321. It
means that changes in the intrinsic motivation variable will
impact most to the changes in employees’ job satisfaction,
making it the most significant indicator. According to the
researchers’ observation, the result is because most of the
employees in PT. XYZ are from the middle-high income
family. It can be referred to the fact that many of the
employees in PT. XYZ are graduated from the foreign
country. Therefore, pay is not the primary need to fulfill
their employees’ job satisfaction and the extrinsic
motivation has less significant impact compared to the
intrinsic motivation.
CONCLUSION
First test held after gathering the data is outlier test,
validity test, and reliability test to see the justification of the
data. The researchers justified the data in order to ensure
that the data can be processed in the further analysis. The
result shows that all of the variables are valid, reliable, and
no outlier. Next step is analyzing the blue classic
assumption test using four approaches: normality,
autocorrelation, heterocedasticity, and multicollinearity test.
As a result of those approaches, it indicates good data of the
regression model that can be used to be proceed later since it
is normally distributed, no autocorrelation, no
heterocedasticity, and no multicollinearity.
The last anaylsis is using multiple linear regression
model to achieve the research objectives stated in chapter 1.
As a result for the first objective, based on the F-test
conducted, it is shown that both intrinsic and extrinsic
motivation simultaneously have significant influence
toward employees’ job satisfaction. Additionally, the t-test
result shows that the significant values are below 0.05 for all
of those two independent variable which are intrinsic and
extrinsic motivation of PT. XYZ. Hence, it can be
concluded that each of the independent variable, intrinsic
and extrinsic motivations of PT XYZ, have positive
influence in employees’ job satisfaction, which achieve the
second and third research objectives at the same time.
Furthermore, in general, based on the adjusted R
squared valued from the multiple regression analysis,
57.0% of the variation in the intrinsic and extrinsic
motivation can represent the variation in employees’ job
satisfaction of PT. XYZ. Thus, there are still 43% of the
variance in the population which could not been explained
using this model.
However, during the execution of this research, there
are several limitations, which are limitation of scope and
limitation of independent variables. This research does not
cover all functions in PT. XYZ and only focuses on the
Finance Service department. Therefore, there is possibility
that the result of the research may not reflect the condition
of employees’ satisfaction in PT. XYZ as a whole. In
addition, since the research is conducted in only one
company, which is PT. XYZ, the result of this research
cannot be used to generalize the condition of Indonesia
employees’ characteristics as a whole. This research also
only measures two independent variables, which is intrinsic
motivation and extrinsic motivation. Furthermore,
according to the Adjusted R Square of the research, there
are other 43% of factors beside intrinsic and extrinsic
motivation that can influence the satisfaction of the
employees. These 43% is not being covered in our research.
Thus, other independent variables such as dispositional
issue of one’s personality or personal life can be added.
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